Canada signs $20B compensation agreement on First Nations child welfare

The federal government has signed a $20-billion final settlement agreement to compensate First Nations children and families harmed by chronic underfunding of child welfare on reserve, which Indigenous Services Canada said Monday was the largest such deal in Canadian history.
“First Nations children deserve to be surrounded by love and live free of discriminatory government policy,” Cindy Woodhouse, the Manitoba regional chief at the Assembly of First Nations, said in a statement Monday.
“And after three decades of advocacy and months of negotiations, I'm proud to say on behalf the AFN that we have reached another historic milestone for our children and their families.”
The agreement, reached between Canada, the Assembly of First Nations and plaintiffs in two class-action lawsuits, also accounts for the federal government's narrow definition of Jordan's Principle. It was designed to ensure jurisdictional squabbles over paying for services for First Nations kids does not get in the way of those services being provided.
“The parties have agreed on a plan for settling compensation claims to recognize the families and people who have suffered tremendously through discriminatory and systemically racist child-welfare practices,” Indigenous Services Minister Patty Hajdu said in an interview.
The federal government announced in January it had reached agreements in principle, which includes $20 billion for compensation and another $20 billion to reform the First Nations child-welfare system over five years. The full $40 billion was earmarked in the 2021 fiscal update.
The First Nations Children and Family Caring Society and the Assembly of First Nations first filed a complaint under the Canadian Human Rights Act in 2007, arguing chronic underfunding of on-reserve child-welfare services was discriminatory when compared to services provided by provincial governments to children in other communities.
Ottawa pays for child welfare on reserve, but only matches the provincial spending if kids are placed in foster care. The result is far more child apprehensions and family breakups than necessary, and fewer services and supports to help families manage through a crisis.
Data from the 2016 census shows fewer than eight per cent of Canadian children under the age of 15 are Indigenous, but Indigenous youth make up more than half the children under 15 in foster care.
The Canadian Human Rights Tribunal ruled in 2016 that the federal government had discriminated against First Nations children. The Liberal government appealed that ruling, asking a court to quash it. The court declined.
In 2019, the tribunal ordered the government to pay the maximum compensation it could order -$40,000 - to every child who was needlessly removed from their families since Jan. 1, 2006, and also to parents or grandparents whose children were taken away.
The tribunal also ruled that the criteria needed to be expanded so more First Nations children could be eligible for Jordan's Principle.
The federal government also challenged the tribunal's orders in Federal Court, and last fall appealed the ruling upholding it.
But that appeal was paused pending negotiations with Indigenous leaders on the compensation program. Former senator Murray Sinclair, who chaired the Truth and Reconciliation Commission, was hired to help facilitate the talks.
The agreement has now finally been signed by all parties and filed with the Federal Court. Both the court and the Canadian Human Rights Tribunal will need to approve the settlement before any money is handed out.
Hajdu said she's not able to say when people will be able to apply for and receive compensation, but the AFN said it expects that to happen next year.
The other $20 billion intended for long-term reforms includes funding over five years for the First Nations Child and Family Services program.
Hajdu said that negotiation is more complex, and requires the creation of “built-in mechanisms to ensure that children get equal and adequate care, and increasingly, that Indigenous communities have the tools they need to seize that control of that care themselves.”
Those reforms will largely occur under Bill C-92, passed in June 2019, which affirms the jurisdiction for child-welfare services in Indigenous communities rests with the Indigenous families and communities themselves.
This report by The Canadian Press was first published July 4, 2022.
IN DEPTH
Blair and Lucki offer new details, deny interference in RCMP N.S. mass shooting investigation
Emergency Preparedness Minister Bill Blair and RCMP Commissioner Brenda Lucki took turns Monday denying pressuring the RCMP, or interfering in the police investigation into the Nova Scotia mass shooting, saying that their approaches were appropriate and warranted, given the unprecedented nature of the situation.

Inflation rate will remain 'painfully high' all year, Bank of Canada governor anticipates
Bank of Canada Governor Tiff Macklem says Canada's inflation rate is set to remain 'painfully high' for the rest of the year. In an exclusive interview with CTV News, Macklem says the path to a 'soft' economic landing is 'narrowing' but at this point the central bank is not projecting a recession.
Where do the inquiries into the 'Freedom Convoy' protests and use of Emergencies Act stand?
Five months ago, the first 'Freedom Convoy' trucks rolled into Ottawa. After the federal government took the unprecedented step of invoking the Emergencies Act to end the protests, a series of inquiries and probes have been initiated. With the nation's capital bracing for more protests over the Canada Day weekend, CTVNews.ca takes a look at where the main commissions and studies stand.
What key legislation passed, what's in limbo after Parliament breaks for summer
Now that the House and Senate have adjourned for the summer, CTVNews.ca breaks down what key pieces of legislation passed in the final days of the spring session, and what key government bills will be left to deal with in the fall.
Where the five Conservative leadership candidates stand on key policy issues
The Conservative Party leadership race is well underway as contenders hold rallies, duke it out in debates, and slowly release more details of their policy platforms. Here's a snapshot of where the five candidates stand on the economy, housing, climate, defence and social issues.
Opinion
OPINION | Don Martin: The fall of Justin Trudeau has begun
'After a weeks-long survey of just about everyone I've met ... the overall judgment on Justin Trudeau is one of being a political write-off,' writes Don Martin in an opinion column for CTVNews.ca. 'He’s too woke, too precious, preachy in tone, exceedingly smug, lacking in leadership, fading in celebrity, slow to act, short-sighted in vision and generally getting more irritating with every breathlessly whispered public pronouncement,' Martin writes.

OPINION | Don Martin: It's time for the whiners to win and the government to unclog the airports
It's time for the whiners to win and the government to reopen the skies, a return to those glory times of flying when the biggest complaints were expensive parking, a middle seat and stale pretzels, commentator Don Martin writes in an exclusive opinion column for CTVNews.ca.
OPINION | Don Martin: A basic Doug Ford takes a middle-of-the-road victory lap in Ontario election
In an exclusive opinion column for CTVNews.ca, Don Martin says Doug Ford coasted to majority re-election victory in Ontario by sticking to the middle of the road: 'Not too progressive. Not too conservative.'
OPINION | Don Martin: Premier Jason Kenney deserved a better death
There's a lesson for Canada's political leaders in the short life and quick death of Jason Kenney as premier of Alberta, writes Don Martin in an exclusive opinion column for CTVNews.ca.
OPINION | Don Martin: Ford on cruise control to victory in Ontario while Alberta votes on killing Kenney as UCP leader
It's becoming a make-or-break week for two Conservative premiers as their futures pivot on a pair of defining moments, writes Don Martin in an exclusive opinion column for CTVNews.ca.
ANALYSIS & INSIGHTS
CTVNews.ca Top Stories
Air Canada denying passenger compensation claims for staff shortages, citing safety
Air Canada denied a customer complaint and instructed employees to classify flight cancellations caused by staff shortages as a "safety" problem, which would exclude travellers from compensation under federal regulations. That policy remains in place.

Montreal Pride parade cancelled hours before event due to lack of volunteers
Montreal's Pride Parade has been cancelled due to a lack of volunteers able to guarantee a secure event.
Multiple people in hospital, suspect shot after violence on Vancouver's Granville Street
Multiple people were taken to hospital with serious injuries after a violent incident that drew a massive police presence to downtown Vancouver's main entertainment district Saturday night.
'Amanda got justice': Dutch man accused in B.C. teen sextortion case found guilty on all charges
A Dutch man accused of tormenting British Columbia teen Amanda Todd via online threats has been found guilty of all charges he faced in connection with the case, a jury ruled on Saturday.
Help on the way for central Newfoundland fire Premier says is largest since 1961
The rapid growth of a long-burning forest fire in central Newfoundland has triggered a state of emergency in the area and prompted the province's Premier to urge some nearby communities to prepare for possible evacuation.
Best time to see the Perseids meteor shower could be this weekend
While the peak of the Perseids meteor shower, one of the brightest of the year, may be next week, now may be the best time to see the astronomical event, according to The Weather Network.
Hundreds forced out of their homes as Okanagan wildfire rages on in B.C.
An evacuation order remains in effect in Olalla, a community just north of Keremeos, B.C., as a wildfire classified as 'out of control' continues to grow, impacting nearby residents.
Ottawa on track to spend $200M per year on cannabis for veterans
Ottawa is reimbursing a record number of veterans for medical marijuana, with new figures showing the federal government shelled out more than $150 million in the last fiscal year -- more than double the amount just three years ago.
Actress Anne Heche has 'long recovery ahead' after car crash
Anne Heche remains hospitalized and in intensive care after a car she was driving crashed into a residence in Los Angeles on Friday and became engulfed in flames.